Gold Price News and Forecast: XAU/USD attempts bids amid coronavirus woes-led risk-aversion

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD bounces-back towards $1910 amid growing coronavirus woes

Gold (XAU/USD) has bounced-off daily lows near $1902, as the bulls fight back control amid a sell-off in the US Treasury yields, triggered by the coronavirus concerns-induced risk-aversion.

The benchmark US 10-year Treasury yields drop further below the key 0.80% level, now trading at 0.768%, down 1.40% on a daily basis. The pessimism surrounding the American fiscal stimulus, election uncertainty and dwindling economic recovery weigh negative on the higher-yielding US rates and benefit the non-yielding gold.

GBP/USD

Overview
Today last price	1.3034
Today Daily Change	-0.0011
Today Daily Change %	-0.08
Today daily open	1.3045

Trends
Daily SMA20	1.2979
Daily SMA50	1.3009
Daily SMA100	1.2866
Daily SMA200	1.271

Levels
Previous Daily High	1.308
Previous Daily Low	1.3001
Previous Weekly High	1.3177
Previous Weekly Low	1.2895
Previous Monthly High	1.3482
Previous Monthly Low	1.2676
Daily Fibonacci 38.2%	1.305
Daily Fibonacci 61.8%	1.3031
Daily Pivot Point S1	1.3004
Daily Pivot Point S2	1.2963
Daily Pivot Point S3	1.2926
Daily Pivot Point R1	1.3083
Daily Pivot Point R2	1.3121
Daily Pivot Point R3	1.3162

Asia Market: The abyss awaits as lockdowns loom

The weaker USD and lower yields initially boosted gold overnight. Still, momentum has fallen prey to the possibility of EU nations’ lockdowns, triggered by a marked departure from the Euro. And with gold investors not banking on pre-election stimulus – and that may even get delayed if the US elections results are contested – EURUSD levels might be a crucial bellwether for gold.

While the return of curfew type containment measures in the Eurozone has not notably unnerved the EUR bulls so far, the imposition of national lockdowns could see the Euro topple and provide the magnetic attraction to drag gold lower.

AUD/USD holds above 0.7000 as Fed and RBA, inflation tests loom

The Australian Dollar consolidates for the fourth straight day versus the US Dollar, yet registers modest gains of 0.11%, as price action shifts to choppy ahead of the Federal Reserve’s monetary policy decision. A busy US economic docket barely moved the markets, while traders eye the release of Australia’s Consumer Price Index.

USD/JPY sticks to modest gains above 157.50 as traders await Fed, BoJ meetings

USD/JPY attracts buyers for the third straight day, recovering further from a one-month low ahead of Wednesday’s FOMC decision and the BoJ policy update on Friday. Meanwhile, expectations that the BoJ may hold off on aggressive rate hikes weigh on the Japanese Yen, and the US Dollar advances to a nearly two-week high, supporting the currency pair.

Gold holds above $4,000 as traders brace for Fed interest rate decision

Gold edges higher during American trading hours on Tuesday after trading in negative territory earlier in the day. A slight decline in Oil prices offers some relief, although a firmer USD limits the upside as traders await the Fed’s monetary policy announcement on Wednesday.

Australia CPI set to climb in September, fueling RBA rate-hike bets

The Australian Bureau of Statistics (ABS) will publish the September Consumer Price Index (CPI) on Wednesday at 00:30 GMT. The report is expected to show that inflation rose 4.2% from a year earlier, higher than the 4% posted in August. The monthly CPI is forecast at 0.7% following the 0.4% print from the previous month.

What can we expect from the RBNZ monetary policy decision?

On Wednesday, October 28 at 01:00 GMT, the Reserve Bank of New Zealand, led by Governor Anna Breman, is expected to raise the Overnight Cash Rate by 25 basis points, from 2.75% to 3%, as money markets price in a 100% chance. This would be the third-rate hike by the RBNZ, while the odds for another hike in December are nearly 50%.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.